Agents Mutual, the company behind online property website OnTheMarket.com, is gearing up to float on London's Alternative Investment Market and raise £50million in a bid to challenge its rivals.

Estate agent backed On The Market is currently Britain's third biggest online property site behind Rightmove and Zoopla.

Cautious about how far On The Market's whirl on AIM will help it in its quest to claw back dominance from its rivals, George Salmon, analyst at Hargreaves Lansdown, said the group still had a 'significant' way to go.

Third place: Estate agent backed On The Market is currently Britain's third biggest online property site

Using cash generated from its launch on AIM, On The Market plans to boost its marketing, sales, customer relations and technology operations.

The company said it plans to roll out a 'heavy-weight national TV, digital and print media campaign.'

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Earlier this year, On The Market announced it was abandoning its mutual status.

In the meantime, it has signed a number of long-term listing agreements with property service firms and estate agencies, namely Arun Estates, Chancellors Group and Hunters Property Group.

Ian Springett, chief executive of On The Market owner Agent Mutual, said: 'Our demutualisation received overwhelming support from members, and more recently we have signed new long-term listing agreements with a number of leading estate agencies and property services providers.

'We are now well placed to list and raise new funds to challenge the two leading incumbent portals.'

He added: 'We are excited about this new chapter in On The Market's development, which will strengthen our market position, and benefit our agents, investors and consumers using our services.'

Plans: OnTheMarket said it plans to use part of the £50million raised on a 'heavy-weight' TV campaign

But, George Salmon, an equity analyst at Hargreaves Lansdown, said: 'Backed by estate agents themselves, the launch of On The Market in 2015 was meant to disrupt the duopoly of Rightmove and Zoopla.

'The group is now the UK's third biggest portal, but all this really means is that it's first among the also-rans.'

He added: 'In a business that's all about generating the necessary scale, this seems a sensible strategy.

'However, there's a difference between doing the right thing and doing the right thing successfully.

'The challenge of toppling Rightmove remains a significant one.'

Earlier this year, On The Market won a competition case upholding its rule that estate agents who list on its website must choose only one additional listing out of Zoopla and Rightmove.

The rule means estate agents cannot use two rival sites at the same time.

Rightmove's share price is currently up 0.04 per cent to 4,256.50p.

OnTheMarket was launched in 2015 by a group of well-known estate agents, including Savills and Knight Frank.